SBP Monetary Policy Committee to Meet on May 5, Rate Cut Expected

The State Bank of Pakistan’s Monetary Policy Committee (MPC) will convene on Monday, May 5, to decide the country’s key interest rate for the next two months.

According to a statement from the SBP, the upcoming session will review prevailing economic indicators and set the direction of monetary policy.

Brokerage firm Arif Habib Limited (AHL) has projected a 50 basis point cut, which would lower the policy rate to 11.5% from the current 12%.

In its previous meeting held on March 10, the central bank opted to keep the rate unchanged. However, with inflation easing and economic stability improving, analysts now anticipate a gradual reduction in the policy rate — potentially by up to 200 basis points by year-end.